According to a report recently released by Bloomberg, an account detailing the debts and expenditures of the trading firm, Alameda Research, has been recently uncovered.
However, the surprising detail is that the account was registered under the name of a certain Nishad Singh, who was a director of engineering at Alameda for more than a year before he crossed over to FTX. It appears that the FTX officials knew that the exchange lent its clients’ money to Alameda Research to help cover its debts.
Questionable Accounts Concealing Debts Uncovered
It appears that the former CEO of the failed FTX exchange will soon be completely caught up in his own game. Since his unfortunate fall back in November and until his arrest, Sam Bankman-Fried had gone on a number of press tours, claiming that the $8 billion dollar hole was merely an oversight and that he did not harbour any malicious intent.
However, the most recent discovery of a carefully concealed GitHub account has strongly suggested the contrary. The account was registered under the name of Nishad Singh, who is a former director of engineering at Alameda before crossing to the FTX exchange and who has been regarded as a part of Bankman-Fried’s “Cabal,”
In the report posted by Bloomberg, it claims that there were some sorts of “comments” and some “code lines” that pointed fingers at an “unknown Korean account” that, according to a regulator, helped conceal the surmounting debts at Alameda Research.
According to the complaint made by the US Commodity Futures Trading Commission earlier this week, it is apparent that Alameda transferred the liabilities of its $8 billion debt to an FTX customer account while Sam Bankman-Fried continued to refer to it as an account belonging to “a certain Korean friend of the company” while carefully concealing a part of Alameda’s debts.
The dubious account also was entitled to the privileges enjoyed by Alameda’s accounts, especially as regards being exempt from some sections pertaining to the management of FTX risk policies.
The CFTC alleged that the supposed “Korean account” was intentionally not registered under Alameda Research, and nothing could ordinarily prove it as being associated with the trading firm.
Bankman-Fried Denied Parole By The Bahamian Authorities
Following his arrest, Sam Bankman-Fried has been denied parole for the eight counts of financial-related offences he has been charged with.
There are talks about extradition as soon as the process is finalised, but it appears that the ex-CEO will try to fight the process.
The US regulators, in a bid to deter other intending fraudsters like him, have stated that they would pursue his case tightly and ensure that he is adequately brought to book.
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